*Note: Adjustments on account of interest on bonus debentures (net
of tax)

All figures in millions, except EPS

All US dollar figures based on convenience translation rate of
1USD = Rs53.01

Dr. Reddy’s Laboratories Limited and Subsidiaries

Unaudited Consolidated Income Statement

Particulars

Q3 FY12

Q3 FY11

($)

(Rs)

%

($)

(Rs)

%

Growth %

Revenue

522

27,692

100

358

18,985

100

46

Cost of revenues

210

11,117

40

162

8,571

45

30

Gross profit

313

16,575

60

196

10,414

55

59

Operating Expenses

Selling, general & administrative expenses

145

7,679

28

120

6,374

34

20

Research and development expenses

29

1,514

5

25

1,306

7

16

Other operating (income) / expense

(3

)

(165

)

(1

)

(4

)

(199

)

(1

)

(17

)

Results from operating activities

142

7,547

27

55

2,933

15

157

Net finance (income) / expense

(3

)

(174

)

(1

)

1

48

0

-

Share of (profit) / loss of equity accounted investees

(0

)

(26

)

(0

)

0

1

0

-

Profit / (loss) before income tax

146

7,747

28

54

2,884

15

169

Income tax (benefit) / expense

49

2,616

9

3

152

1

-

Profit / (loss) for the period

97

5,131

19

52

2,732

14

88

Diluted EPS

0.6

30.2

0.3

16.1

88

Profit Computation

(in millions)

EBITDA Computation

Q3 FY12

Q3 FY11

($)

(Rs)

($)

(Rs)

PBT (reported)

146

7,747

54

2,884

Interest

3

155

2

98

Depreciation

17

899

14

758

Amortization

8

408

6

307

EBITDA

174

9,208

76

4,048

(in millions)

Adjusted PAT Computation

Q3 FY12

Q3 FY11

($)

(Rs)

($)

(Rs)

PAT (reported)

97

5,131

52

2,732

Adjustments:

Interest on Bonus Debentures (net of tax)

1

78

Adjusted PAT

98

5,209

52

2,732

Key Balance Sheet Items

(in millions)

Particulars

As on 31st Dec 11

As on 30th Sep 11

($)

(Rs)

($)

(Rs)

Cash and cash equivalents

313

16,587

143

7,596

Trade receivables

498

26,373

388

20,568

Inventories

369

19,586

351

18,592

Property, plant and equipment

612

32,433

593

31,450

Goodwill and Other Intangible assets

287

15,182

285

15,115

Loans and borrowings (current & non-current)

727

38,502

591

31,303

Trade payables

173

9,189

169

8,940

Equity

980

51,927

907

48,081

Q3 FY12 Revenue Mix by Segment

(in millions)

Q3 FY12

Q3 FY11

Growth %

($)

(Rs)

%

($)

(Rs)

%

Global Generics

402

21,287

77

256

13,589

72

57

North America

11,114

4,765

133

Europe

2,426

2,124

14

India

3,333

3,000

11

Russia & Other CIS

3,317

2,880

15

RoW

1,097

820

34

PSAI

105

5,563

20

94

4,979

26

12

North America

1,170

770

52

Europe

1,651

1,830

(10

)

India

862

622

39

RoW

1,880

1,757

7

Others

15

842

3

8

417

2

102

Total

522

27,692

100

358

18,985

100

46

Q3 FY12 Revenue Mix by Geography

(in millions)

Q3 FY12

Q3 FY11

Growth %

($)

(Rs)

%

($)

(Rs)

%

North America

242

12,826

46

110

5,823

31

120

Europe

82

4,325

16

77

4,078

21

6

India

79

4,194

15

68

3,625

19

16

Russia & Other CIS

63

3,317

12

54

2,880

15

15

Others

56

3,030

11

49

2,579

14

17

Total

522

27,692

100

358

18,985

100

46

Segmental Analysis

Global Generics: North America

Revenues from North America were at Rs 11.1 billion in Q3 FY12 versus Rs
4.8 billion in Q3 FY11. Growth was led by the high value launch of
olanzapine 20 mg, new products launched in the last twelve months and
strong volume growth across key products.

Strong volume growth contributed by key products such as lansoprazole,
tacrolimus, omeprazole Mg OTC and Shreveport products and last twelve
months new launches of fondaparinux and antibiotics portfolio.

26 prescription products feature among the Top 3 in market share
(Source: IMS Volumes November 2011).

During the quarter, 3 ANDAs were filed. The cumulative ANDA filings as
of 31st December, 2011 are 187. A total of 79 ANDAs are
pending for approval with the USFDA of which 40 are Para IVs and 10
are FTFs.

During the quarter, 7 DMFs were filed globally including 2 in US, 2 in
Europe and 3 in rest of the markets. The cumulative DMF filings as of
31st December 2011 are 513 globally.

Income Statement Highlights:

Gross profit margin 60% to revenues in Q3 FY12, increased largely on
account of a favorable mix of high margin olanzapine revenues and
benefit of rupee depreciation.

Selling, General & Administration (SG&A) expenses including
amortization at Rs 7.7 billion ($145 million) increased by 20% over Q3
FY11. This increase is on account of higher manpower and freight costs
and the effect of rupee depreciation against multiple currencies.

Net Finance income at Rs 174 million ($3 million) in Q3 FY12 versus
net Finance cost of Rs 49 million ($1 million) in Q3 FY11. The change
is on account of:

Profit on sale of investments of Rs 44 million ($1 million) in Q3
FY12 versus Rs 4 million in Q3 FY11.

EBITDA of Rs 9.2 billion ($174 million) in Q3 FY12, represents 33% of
revenues and recorded a year-on-year growth of 127%. EBITDA of Rs 18.6
billion ($351 million) for nine months ended December 2011, represents
27% of revenues and recorded a year-on-year growth of 59%.

Profit after Tax adjusted for interest on bonus debentures (net of
tax), was at Rs 5.2 billion ($98 million) in Q3 FY12, 19% of revenues
and year-on-year growth of 91%. Adjusted PAT for nine months ended
December 2011 was Rs 11.1 billion ($209 million) and recorded
year-on-year growth of 44%.

This press release includes forward-looking statements, as defined in
the U.S. Private Securities Litigation Reform Act of 1995. We have based
these forward-looking statements on our current expectations and
projections about future events. Such statements involve known and
unknown risks, uncertainties and other factors that may cause actual
results to differ materially. Such factors include, but are not limited
to, changes in local and global economic conditions, our ability to
successfully implement our strategy, the market acceptance of and demand
for our products, our growth and expansion, technological change and our
exposure to market risks. By their nature, these expectations and
projections are only estimates and could be materially different from
actual results in the future.

Note: All discussions in this release are based on unaudited
consolidated IFRS financials.